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Green concerns climb corporate IT agenda in Asia

Posted: 30 Aug 2007 ?? ?Print Version ?Bookmark and Share

Keywords:green IT concerns? Asia Pacific region? corporate agenda?

While the effort to decrease the environmental impact of IT is still in the nascent stage, environmental concerns are climbing up the corporate IT agenda in the Asia Pacific. However, there is still a limited awareness of green IT products among end users, partly due to the lack of adequate push by IT vendors in the region. This is according to Springboard Research, who published a report on the expansion of green IT initiatives in the Asia Pacific.

At present, large enterprises in Asia account for the largest electricity consumption for computing at 37 percent, followed by consumer IT users at 34 percent and SMEs and small office/home office (SOHO) segment at 29 percent.

"Springboard estimates that over $5 billion per year is spent on powering computers in the Asia Pacific, with over 66 percent of this spending wasted on systems that are in idle mode," said Bob Hayward, research VP, Springboard Research. "Computing devices have a significantly large and unrecognized carbon footprint. For example, an average-sized server has the same carbon footprint as a mid-sized sports utility vehicle getting 15 miles-to-the-gallon. As companies become more accurate in determining what percentage of energy costs are allocated to the IT department, you will see cost savings be the key driver of green IT investments."

Notably, IT vendors are currently increasing their efforts in the green IT spaceboth from an altruistic and branding perspective as well as to improve their bottom line. Springboard estimates that the largest amount of spending40 percentby IT vendors is focused on increasing the energy efficiency of their products. This is followed by efforts on recycling and disposal at 30 percent and manufacturing in a more environment-friendly way at 25 percent.

But this is not yet the case among end users. "While IT vendors are increasing their spending on green initiatives, IT end users still have little awareness of what green IT is and how it can help their businesses," said Anu Singh, senior market analyst, Springboard Research. "Many end users in Asia see green IT as just another additional cost and they still need to be educated on how it can benefit their organization. This is where we feel IT vendors have a big opportunity. Those that can educate end users on how to be green without increasing their costs or even saving money will differentiate themselves and gain not only increased market share, but also more brand equity in the eyes of their customers."

Greening IT
Based on the report, Springboard outlined its top five predictions for the green IT market:

  • Cost savings will drive green IT investments - Although the desire to create a greener planet will drive some implementations, the primary driver for green IT adoption in Asia Pacific will be the cost savings provided by higher energy efficiency.

  • Regulations become more uniform and stringent - With EU taking the lead and setting precedent, Asian governments will create more uniform and stringent green IT regulations, which will spur greater visibility and adoption.

  • Strong growth in virtualization and consolidation - A majority of end-user investment on green IT will be directed toward virtualization and consolidation efforts, which will boost revenues for these solution categories.

  • Equipment take-back and disposal programs become imperative - IT equipment vendors operating in Asia will increasingly be required by law to provide equipment take-back programs for their customers as has been seen in some developing markets. As some vendors provide these services for free, the providers that do not will stand out.

  • Asian governments will lead green IT adoption in the region - The Asian government IT departments will be the leading green IT adopters and will spark broader green IT investments across other enterprises.





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